Supply bottlenecks are pushing up costs for manufacturers
The effect on inflation should be temporary
LOGISTICS MANAGERS have gained a few grey hairs over the past year. When the virus first spread, they faced a collapse in demand. Now they are scrambling to fill a surge in orders. One in five purchasing managers report “port” or “shipping” delays, the most since 2004, says IHS Markit, a data provider. Such is the shortage of container space that the Freightos Baltic Index, a measure of container prices, rose to over $4,000 on January 15th, compared with $1,200-1,600 in 2019.
This article appeared in the Finance & economics section of the print edition under the headline “Bottlenecks”
Finance & economics January 23rd 2021
- Will Joe Biden’s fiscal stimulus overheat the American economy?
- Supply bottlenecks are pushing up costs for manufacturers
- Have banks now got too much cash?
- China’s regional gap is worsening
- A Swiss money-laundering probe raises disturbing questions
- Property investment: some hard truths
- What is the link between economic crises and political ruptures?
From the January 23rd 2021 edition
Discover stories from this section and more in the list of contents
Explore the editionMore from Finance & economics
Do tariffs raise inflation?
Usually. But the bigger problem is that they harm economic growth and innovation
European governments struggle to stop rich people from fleeing
Exit taxes are popular, and counter-productive
Saba Capital wages war on underperforming British investment trusts
How many will end up in Boaz Weinstein’s sights?
Has Japan truly escaped low inflation?
Its central bankers are increasingly hopeful
How American bankers dodged the MAGA carnage
The masters of the universe have escaped an anti-globalist revolt
China’s financial system is under brutal pressure
When will something break?